Category Archives: Silico Manganese

silico manganese auction

India: Bids drop by INR 1,200/t at SAIL’s silico manganese auction

State-owned Steel Authority of India Ltd (SAIL) conducted an auction for 500 t of HC silico manganese (56/16, 0-3mm and 3-10mm) from its Chandrapur Ferro Alloy Plant in Maharashtra on 24 Jul’21. Buyers booked the entire quantity of 0-3mm silico manganese at INR 58,800/t, while the 3-10mm material was booked at INR 75,800/t exw. Bids dropped by INR 1,200/t for 3-10mm material. At the previous auction on 16 Jul, 300 t of 3-10mm was booked at INR 77,000/t, down by INR 6,400/t compared to the previous auction on 2 Jul.

 

Indian silico manganese prices fall on weak demand

Indian silico manganese prices have been edging down gradually for a couple of weeks now due to waning domestic demand. Currently, prices for the 60-14 grade are hovering at around INR 94,000-95,000/t exw for both Raipur and Durgapur.

According to SteelMint sources, most of the smaller steel units have reduced their production owing to higher prices of raw materials. Meanwhile, a few small steel mills also had to shut operations on account of low inquiries for steel offtake from the market.

Silico manganese producers are now resisting a further reduction in their prices as most of them remain booked for the month. Exporters are offering Oct-Nov’21 shipments, but buyers are refraining from taking position ahead of time.

Meanwhile, some silico manganese producers from Durgapur shifted to ferro manganese owing to better demand as per market sources. Currently, SteelMint’s assessed silico manganese prices for 65-16 are at around $1,430-1,440/t FoB India. However, some producers are offering higher prices as they remain sold out for the month.

Many Chinese smelters had to cut their production by up to 40% as the Power Dispatches Center of Inner Mongolia reduced power consumption in the region in the previous week for five days which further triggered the rise in silico manganese prices in the Chinese spot market due to supply shortage.

Higher grade manganese ore prices are unchanged w-o-w amidst lower demand from China. Imported manganese ore prices remain on the higher side amidst higher freight costs, which are supporting the silico manganese prices. Meanwhile Indian smelters are waiting for MOIL to release its manganese ore prices for next month. There is an increased expectation that the prices might remain unchanged, further putting pressure on the down-trending silico manganese market.

Outlook
Silico manganese prices might fall further on limited support from the domestic market. However, silico manganese producers are speculating that prices may rebound after steel production returns to normalcy.

 
Indian Silico Mangansese weekly prices

India: Bids drop by INR 6,400/t at SAIL’s silico manganese auction

State-owned Steel Authority of India Ltd (SAIL) conducted an auction for 600 t of silico manganese HC 56/16 (0-3mm and 3-10mm) from its Chandrapur Ferro Alloy Plant in Maharashtra on 16 Jul’21. Out of the total quantity offered, only 300 t (3-10mm) was booked at INR 77,000/t, down by INR 6,400/t compared to the previous auction on 2 Jul. According to sources, weak demand in the domestic market resulted in poor participation at the auction.

 
Indian Silico Mangansese weekly prices

India: Silico manganese prices soften but high-grade offers rise

  • Indian silico manganese prices soften;
  • South East Asian countries unwilling to accept higher offers;
  • Higher grade ore offers rebound.

The Indian silico manganese market softened as domestic demand waned after induction furnaces reduced their steel production levels. However, major producers who booked ample amounts of the material at higher prices, remain sold out till next month and are reluctant to reduce their offered prices. But a few producers, who are solely dependent on the domestic spot market, have reduced their offers on fears that inventory may pile up.

Although the prices in the European market are skyrocketing due to supply concerns, the prices in the exports market for India keep correcting amidst low acceptance of higher prices from South East Asian countries. Most of these countries have procured enough volumes in an expectation of further price hikes and are now reluctant to accept higher prices.

Meanwhile, Malaysian plants have started their operations and the Chinese exports of silico manganese at lower prices are disrupting the stability of export offers from India. Currently, offers are at around $1,450-1,470/t FoB India for 65-16 grade. However, few deals for European countries were also concluded at around $1,500/t FoB India.

There is a huge container shortage from the eastern ports of the country, which is also creating more pressure on the sellers in that region, to sell in the domestic market, as per market sources. Current domestic offers are at INR 96,000-96,500/t ex-Raipur and INR 95,000-95,500/t ex-Durgapur. However, very limited deals in Raipur were also concluded at around INR 95,000/t and the buyers are insisting on the lower prices.

The higher-grade manganese ore prices increased by around 4% w-o-w amidst increasing freight crates. Major Brazilian manganese miners commented that with the current prices of freight, the Chinese port prices are not supportive and they might have to reconsider the supplies. Meanwhile, there is scarcity of South African carbonate offers in the Chinese market, which led to the increase in spot offers, and this might get reflected in the offers next week.

Outlook

According to the silico manganese smelters, prices might rebound shortly, as the sentiments for semi-finished and finished steel have improved as compared to the previous week.

 

USA: Manganese alloys imports increase sharply on month in May’21

Imports of silico manganese by the US in May’21 were recorded at 32,742 t, higher by 190% against 11,277 t in April, as per customs data. Also, ferro manganese imports jumped by 125% m-o-m in May. Lack of domestic trading activity in the US turned buyers’ attention to the seaborne market. In the Jan-May’21 period, silico manganese and ferro manganese imports by the US decreased by 25.7% and 11.7% respectively compared with data available for the same period last year.

 
Indian Silico manganese prices

India: Silico manganese prices edge down as domestic demand wanes

Domestic demand for silico manganese has been dull since the past couple of weeks. Many steel mills have reduced their production levels amidst higher prices of raw materials and declining margins. This has had a cascading effect on the rising prices of silico manganese.

Prices have started coming down over the past two weeks, and are currently ruling at around INR 98,000/t ex-Raipur and INR 97,000/t ex-Durgapur. However, there is great variation in prices across regions, depending on availability.

Meanwhile, higher profit margins so far are also enabling sellers to lower their prices to attain higher volumes.

Some deals in Vizag and Durgapur were also concluded at around INR 95,500/t. However, most sellers are reluctant on reducing prices further. Producers believe that prices may soon pick up after steel production improves. Bearish sentiment is sustaining and increasing domestic manganese ore prices may not support silico manganese prices either.

The export market also remained sluggish as European demand is drying up and the importers are reluctant on taking positions for Nov’21 shipments.

Currently, offers are around $1,380-1,390/t FoB India for the 60-14 and $1,500/t FoB India for the 65-16 grade. Some producers are also offering at even lower prices compared to the stated levels.

Most producers are booked and offering very limited quantity in the spot market. A few producers and many traders who are solely dependent on the spot market are reducing prices, expecting these to fall further.

It is widely expected that steel prices may drop further in the month.

Most Indian buyers, at present, are expecting a further fall in prices and therefore resisting buying higher volumes, further putting pressure on the silico manganese smelters.

Some major miners increased manganese ore prices for Aug’21 shipments amidst soaring freight rates. However, higher port inventory in China and production cuts in northern provinces, are yet to impact the Chinese spot market.

Outlook
Prices of silico manganese are expected to fall further amidst low demand in the domestic market. Meanwhile, in the exports market, prices are expected to remain stable due to the appreciating Indian currency against the US dollar.

 

Turkey: Manganese alloys imports decrease on high prices in May’21

According to customs data, Turkey’s silico manganese imports decreased by 8% m-o-m to 19,310 t, while ferro manganese imports fell by 50% m-o-m in May’21 on prevailing stiff prices.

  • Ukraine remained the largest exporter to Turkey, with 12,999 t of silico manganese exports.
  • India emerged as the second leading exporter in May’21 with 3,105 t, followed by Georgia at 1,832 t.
 

South Africa: Silico Manganese exports increase 57% in May’21

Silico manganese exports by South Africa witnessed a hike of 57.3% m-o-m to 15,607 t in May’21. Supply crunch and higher demand in line with firm global silico manganese prices resulted in an increase in South African exports. Meanwhile, the country exported more than 69,000 t of silico manganese in the first five months of CY’21, an increase of 10.8% y-o-y compared to Jan-May’20.

 

India’s Silico Manganese Export in FY21

India’s silico manganese exports increased by 11.76% to 0.76 mn t in FY21, against 0.68 mn t in FY20. United Arab Emirates and Japan stood as the largest importers during the year, both at 0.10 mn t, and up 11.11% y-o-y for both countries. Italy is the second largest importer at 0.08 mn t, up 100% y-o-y compared to 0.04 mn t in FY20, followed by Taiwan at 0.06 mn t and Egypt at 0.05 mn t.

 

India’s Silico Manganese Exports in Last 5 Years

India’s silico manganese exports increased by 11.76% to 0.76 mn t in FY21, against 0.68 mn t in FY20. United Arab Emirates and Japan stood as the largest importers during the year, both at 0.10 mn t, and up 11.11% y-o-y for both countries. Italy is the second largest importer at 0.08 mn t, up 100% y-o-y compared to 0.04 mn t in FY20, followed by Taiwan at 0.06 mn t and Egypt at 0.05 mn t.